Mitsubishi Chemical Corporation Q3 Report 2023
Performance Overview
In the business environment in the consolidated first three quarters (April 1, 2022 – December 31, 2022; same hereafter) of the Mitsubishi Chemical Group (MCG), the global economy overall continued to modestly trend upward, as socioeconomic activities return to normal. However, the outlook continues to remain murky due to concerns over economic downturn reflecting volatility in the financial and capital markets, in addition to a rise in raw material and fuel prices.
Against this backdrop, sales revenue in the consolidated quarter under review (April 1, 2022 – December 31, 2022; same hereafter) increased ¥505.9 billion, or 17.4%, to ¥3,406.2 billion. In the profit front, core operating income fell ¥41.0 billion, or 18.8%, to ¥177.9 billion. Operating income was down ¥169.6 billion, or 77.7%, to ¥48.6 billion due to the recording of impairment losses related to Chemicals Segment and the Health Care Segment under Special Items. Income before taxes decreased ¥169.0 billion, or 81.2%, to ¥39.2 billion. And net income attributable to owners of the parent dropped ¥105.1 billion, or 86.0% to ¥17.0 billion.
Performance Products Segment, Performance Products Domain
In comparison with the same quarter in the previous consolidated fiscal year, sales revenue increased ¥95.6 billion, to ¥944.5 billion and core operating income declined ¥3.4 billion, to ¥54.1 billion.
In polymers and compounds, sales revenue climbed. Although sales volumes declined, mainly for products used in automobile applications, MCG made progress in passing on a rise in raw material costs to selling prices, and owing to contribution from forex translation impact.
In films and molding materials, sales revenue increased. Although sales decreased reflecting a rapid retreat in demand for products used in display applications, and due to the transfer of the polycrystalline alumina fiber business in March 2022, there was positive impact mainly from a correction to selling prices accompanying a rise in raw material costs as well as strong trends in demand for molding materials.
In advanced solutions, sales revenue grew underpinned chiefly by a correction to selling prices in tandem with a rise in raw material costs and also owing to strong demand trends in the semiconductor-related business.
Meanwhile, core operating income in this segment declined. Although progress was made in passing on cost to selling prices, amid impact from a rise in raw material costs, core operating income was hindered primarily by a rapid decline in demand for products used in displays and an increase in costs due to inflation.
